Huatai Securities, China’s 10th-largest securities firm by assets, plans to raise up to US$2.5 billion through its initial public offering in Shanghai, Bloomberg reported. The Nanjing-based broker will offer as many as 784.6 million shares at RMB20-22 (US$2.92-3.22), valuing it at 29.41-32.35 times 2009 earnings. It will be the biggest IPO in China since Metallurgical Corp of China raised US$2.78 billion in September, although there are concerns that the demand for new equity is drying up. In the last month China XD Electric and China Erzhong Group Deyang Heavy Industries became the first Chinese companies since 2004 to fall on their trading debuts. Meanwhile, China First Heavy Industries failed to raise the maximum amount targeted through its listing. The two brokerages to list in Shanghai since August, China Merchants Securities and Everbright Securities, are both now trading below their offer prices. A total of 41 Chinese companies raised a combined US$7.1 billion through IPOs globally in January. Thirty-seven of these listed in the mainland, raising US$6.88 billion.
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